Zerodha Coin Platform Review-Mutual Funds Investment Via Zerodha Coin
Mutual funds today can be purchased in two ways – either through a distributor or directly from the AMC. Through a distributor and Direct.
When purchased Via Distributor – the distributor earns an upfront commission of up to 1.5% on your investment and a trail commission of up to 1.5% every year for as long as you are invested in the fund. Yes, This is the reason behind everyone from your bank to brokerage would be forcing you to invest via them. You may not be aware of it.
For example, Assume you have invested Rs 5000 SIP monthly for 25 years, in this scenario you will end up paying almost Rs 30 lakhs as commissions to your MF advisor, almost 20% of your corpus which is your investment Returns. (here you assuming you making 15% per annum compounded returns, thus you end up paying a modest 1% as upfront and 1% as trial commission)
Why Invest Through Zerodha Coin?
Zerodha Coin is India’s largest direct mutual fund platform that lets you buy direct mutual funds online with no commission passback, directly from asset management companies. Your mutual funds, stocks, currencies, bonds, and more, all in your Demat account.
Unlimited free investments in direct mutual funds Commissions on regular mutual funds can be up to 1% compounded every year. Buy direct funds for Coin — free.
Direct Mutual Funds are not common in India. There has always been an agent who used to take a commission. Zerodha Coin allows you to invest directly in mutual funds in DEMAT similarly as you invest in Equity, Currency, or other segments. The best part of Zerodha coin is that it does not charge you any brokerage for any direct investments. Also, funds are in Demat hence you can buy and sell it anytime.
Buy Direct Mutual Funds in one Place!
Zerodha provides 2000+ mutual fund schemes to Invest and It could be confusing for a person who is new to Mutual funds to choose the right scheme hence Zerodha Coin have already filtered few best schemes with their research and their recommendations are really good like Mirae Asset Emerging bluechip fund, Kotak bluechip fund, Axis long term equity, etc.
The other firms earn a commission (upfront and trail income) from your investments done through their platforms. The commission is up to 1.5% per annum depending upon the scheme where the investment is done, some times it is a roundup transactional cost of minimum 100Rs, and Maximum 300Rs also being charges from firm to firm. Zerodha does not charge anything and hence this is the best firm in all parameters.
Mutual fund orders on Coin are processed from the available trading account balance which may further be used for trading equities, F&O. Please ensure to maintain sufficient balance to avoid paying any margin shortfall penalties. It means with your Zerodha Coin Login ID and Password you will also be able to login to all Zerodha Platforms, The Funds available on the coin platform are in common to all platforms, and if you wish you can do Equity Investments, Commodity Trades or even buy Bonds. If you still wish you can even gift Stocks from your Zerodha Coin Funds. It is one platform on which you can dynamically access the features over any application of Zerodha.
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